Oral replies by President Jacob Zuma on questions in the National Council of Provinces

1. Ms N D Ntwanambi (ANC-WC) to ask the President of the Republic:

Whether any progress has been made in implementing the (a) commitments of the Special Presidential Package regarding the living and working conditions of mine workers and (b) full Presidential Package in other areas as envisaged; if not, why not; if so, (i) what progress, (ii) what challenges are being experienced in each case, (iii) what (aa) measures and

(bb) strategies have been put in place to fast track the successful implementation and (iv) what monitoring and evaluation system has been put in place to track (aaa) the progress regarding the implementation and (bbb) its impact?

Reply:

Honourable Chairperson,

Progress in the implementation of the commitments of the Presidential Package has continued well.

The Department of Human Settlements has set aside 1.1 billion rand and a further 1.6 billion rand under the human settlements development grant for the coming financial year 2014-2015.

The current year has been spent consulting communities and traditional leaders as well as municipalities.

To monitor progress, the Inter-Ministerial Committee led by Minister in The Presidency responsible for Performance Monitoring and Evaluation recently visited Saulspoort in the Moses Kotane Local Municipality in Rustenburg.

The Saulspoort housing project in Mogwase Unit 8 was approved in 2010 for the building of 1 120 fully-subsidised houses with a budget allocation of 73, 5 million rand. This was done to cater for the increase in workers from outside the area to Moses Kotane as stimulated by the establishment of some mining operations.

In addition, in line with the Mining Charter, various mining companies are at various stages of converting single sex hostels into housing and family units. The target for conversion of all single sex hostels remains 2014 and mining houses have been urged to comply with this deadline.

The Department of Mineral Resources is monitoring the process.

Honourable Members,

The Presidential project is being rolled out to remaining priority sites including Klerksdorp, Emalahleni, Sekhukhune, Lephalale, West Rand and Welkom. Although progress is being made, some challenges have been encountered with regards to the implementation of the package.

These include the quality of the long term plans and the need to ensure more stable industrial relations in mining.

A technical team of senior officials has been appointed to ensure that any blockages to delivery are addressed swiftly.

This task team will focus on four key areas relating to housing and living conditions of mineworkers.

These are:

  • Decent human settlements in mining towns and for mine workers;
  • Improved socio-economic conditions of mine communities and labour sending areas.
  • Improving labour relations in the mining sector and working conditions of mineworkers; and
  • Ensuring a meaningful and aligned contribution of the mining sector to he development of mining towns.

Minister Collins Chabane responsible for Performance Monitoring and Evaluation in the Presidency leads the process.

I thank you.

2. Ms M G Boroto (ANC-Mpumalanga) to ask the President of the Republic:

Whether the Government has any (a) plans, (b) strategies and (c) initiatives in place to give greater impetus to reforms in order to (i) restore and/or improve business, (ii) attract more foreign investment, (iii) improve the country's competitiveness, (iv) improve and enhance the growth of domestic sources , (v) end (aa) strikes, especially protests in the mining sector and (bb) service delivery protests and (vi) grow the economy in general; if not, (aaa) why not and (bbb) what are his and the Government's plans in this regard; if so, what are the relevant details?

Reply:

The overarching National Development Plan, along with the New Growth Path and the Industrial Policy Action Plan, list various interventions that the state will undertake to improve growth, employment and the lives of all South Africans over the next decade.

The implementation of these plans is facilitated through a coordinated cluster system where government departments discuss and agree on policy interventions.

Government has also convened meetings with labour and business to discuss the economy and specific interventions.

A few interventions have already been implemented.

One is the development of standards, accreditation programmes and increased testing capacity for new products.

This has enabled the growth of a range of new sectors, including green industries and industrial energy efficiency.

Second, in the 2013 National Budget, the 14 million rand turnover thresholds for small businesses was lifted to 20 million rand and the graduated tax structure was also adjusted.

Thirdly, the financing of SMMEs has been simplified by the creation of the Small Enterprise Finance Agency in 2012.

Fourth, international headquarter company status will now be allowed forcompanies with shares and debt listed on the JSE. The participation threshold will be reduced to 10 per cent.

This will improve South Africa's status as a gateway to Africa as well as increase the level of Foreign Direct Investment into the country.

Honourable Member

Government remains fully committed to improve South Africa's competitiveness in the global economy and the growth of domestic industries.

Various interventions are in place drawing on the recommendations from the plans.

These include:

  • diversifying trade to reduce the economy's dependence on commodity cycles.
  • increasing opportunities for South African companies to partner with companies in advanced economies and to invest in high-growth economies.
  • increase regional integration by establishing strong economic diplomatic presence as this will improve market access of South African exports.
  • working with trading partners to lower tariff and non-tariff barriers, to reduce delays and corruption at border posts; and
  • improving transport and logistics network to ensure that capital expenditure projects do improve South Africa's competitiveness.

The various plans form an important part of South Africa's development path.

The listed actions are only a few of those identified by the National Development Plan, which are required to achieve an inclusive growth of 5.4 per cent over the long-term.

Government is also addressing various infrastructure bottlenecks, which will improve growth in the short-run as well as the ability of the economy to grow in the medium to long-run.

We have also taken various actions to improve service delivery. The establishment of the Department of Performance Monitoring and Evaluation is designed to help in this regard.

Through Cabinet, the Department provides regular reports on the performance of departments and Ministers. Also being prioritized is training for public service managers in both technical skills, citizen care and communication.

Communication skills are important as in some cases people are frustrated by the failure to inform them when there are delays in the delivery of certain services.

With regard to the developments in the mining sector, a high level task team led by the Deputy President of the Republic and which includes the Ministers of Finance and Mineral Resources is continuing its work to improve the labour relations environment in the mining sector.

I thank you.

3. Mr M H Mokgobi (ANC-Limpopo) to ask the President of the Republic:

Whether, in line with the King Sabatha Dalindyebo Municipality Presidential Intervention (details furnished), his Office or any entity of the Government has assessed or received a report as to whether (a) there is adequate delivery on the mandate he issued and (b) any challenges still exist regarding this matter; if not, what is the position in this regard; if so, (i) what challenges, (ii) how will such challenges be (aa) addressed and (bb) resolved (iii) what are the further relevant details?

Reply:

The Presidential Intervention in King Sabata Dalindyebo municipality involves a number of initiatives that are aimed at revitalising infrastructure in Mthatha and its surrounding areas.

These initiatives are focused on water and sanitation, electricity, roads and transport, human settlements and governance.

To date, 58 projects to a value of approximately two billion rand have been completed and 83 projects are in progress, to a value of approximately three billion rand. In addition, over 5 800 jobs have been created.

There has been progress in the construction of roads. The Nkosi Dalibhunga Bridge in Mvezo has been completed and the Mthatha bridge is 88 percent complete.

The condition of the Mthatha internal roads has deteriorated and the Department of Transport is investigating interventions that can assist to improve the situation.

The municipality will also be assisted to improve the management of the roads.

The airport runway is complete and operational. Measures to appoint a new service provider for the terminal building are underway.

Honourable Members,

Key water and sanitation projects in the municipality are also being implemented.

These include the upgrading of the Waste Water Treatment Works in Mthatha and the water-borne sewerage system in Mqanduli, as well as bulk infrastructure in Mthatha, Mqanduli, and Coffee Bay.

The Mqanduli rural electrification programme is complete and 873 households have been connected. To ensure stability of power and prevent overloading, two new substations are planned for.

The construction of the Thornhill electricity substation is 83 percent complete while the Sidwadwa substation is awaiting the finalisation of the supply chain processes by KSD.

The upgrade of the informal settlements in Joe Slovo, Chris Hani, Mandela Park and Phola Park is underway. The construction of alternative technology houses in Ngangelizwe has commenced.

The municipality is receiving support with respect to improving its governance and administration.

For example, the Department of Performance Monitoring and Evaluation in the Presidency will be piloting the municipal assessment tool in the municipality, starting at the end of September.

We are happy with the progress thus far Honourable Members.

I thank you.

4. Mr M P Jacobs (ANC-FS) to ask the President of the Republic: (1) Whether, with regard to his visit to Diyatalawa and Mokgolokoeng in Qwaqwa in the Free State to assess the efficacy of rural development programmes in the area, any progress has been made since his visit in implementing the rural development interventions in the area; if not, (a) why not and (b) what are his and the Government's plans and/or strategies in this regard; if so, what are the relevant details; *(2) whether he has found the progress to be satisfactory; if not, what is the position in this regard; if so, what are the relevant details?

Reply:

Honourable Members,

Progress has been made at the two settlements of Diyatalawa and Makgolokoeng in the Free State, comprising part of the pilot sites under the Comprehensive Rural Development Programme, led by the Department of Rural Development and Land Reform.

Many of the issues raised by the community during our initial visit have being addressed.

These included the provision of housing at Diyatalawa, the construction of secondary schools in both communities and the Sterkfontein-Qwaqwa Bulk Water Supply improvement project.

Other issues are in the process of being addressed, such as improvements to the local water distribution system through the construction of a reservoir in Makgolokoeng, and road and bridge works.

The community of Makgolokoeng is now connected to the Tshiame water network and has access to water several hours a day through communal taps located at walking distances from the homes.

The completion of a permanent reservoir for the community will ensure full day access to water.

Yield and water quality analysis on underground water has been conducted and four boreholes have been installed with solar systems and pumps.

In terms of improving access to education, the Department of Education has constructed a new boarding school in Diyatalawa with a capacity of 200 scholars. Learners were recruited from other schools to stay in the

hostels. Partnership programmes aimed at providing electricity are in progress with the Department of Energy working with Eskom in finding sustainable solutions to the energy challenges facing the two villages.

Thus far, the installation of solar systems for lightning and geysers has been completed in all housing units at Diyatalawa, with solar street lights installed in and around the community.

In addition, the Office of the Premier and the Department of Rural Development and Land Reform are facilitating several income-generating initiatives in the two communities, under the Comprehensive Rural Development Programme (CRDP).

These include a dairy livestock project and milking project, an orchard project, construction of a potato washing, grading and packaging shed, repair and fencing of hydroponic tunnels and vegetable production activities. In addition, a 100 hactares irrigation system has been developed to plant pastures to feed the dairy cattle.

Furthermore, an ICT centre has been established in Diyatalawa.

Honourable Members,

We are indeed happy about the progress that has been made thus far in both areas.

The Departments of Performance Monitoring and Evaluation and Rural Development and Land Reform are currently carrying out an evaluation of the Comprehensive Rural Development Programme, which will identify lessons and improvements for the future of the programme.

I thank you.

5. Mr MJR de Villiers (DA-WC) to ask the President of the Republic:

(1) Whether, with regard to his promise in 2011 that the Government will create 5 million jobs, the Government has created any additional job opportunities since this promise; if not, why not; if so, (a) how many and (b) in which sectors;*

(2) whether the Government has any plans in place to support its programmes and the private sector in order to create more jobs for the millions who are unemployed; if not, why not; if so, what plans?

Reply:

Honourable Members,

The New Growth Path, which this Government adopted in October 2010, set a target of five million new jobs by 2020.

The National Development Plan takes this target over a longer period by calling for the creation of 11 million new jobs by 2030.

Let me clarify Honourable Members that the targets set in these documents do not reflect government creating jobs within the public service but total jobs that could be created in the economy, including jobs in the private sector.

We set targets as a guide to achieve certain objectives. It is important to have these guidelines and to strive towards achieving them.

It must, however, be noted that there are many external factors that affect businesses and their ability to grow employment that are outside the control of government.

To reach the target of 5 million jobs over 10 years, we would have needed to create half a million jobs every year between 2010 and 2020.

This has not happened thus far as the world economy has not fully recovered from the global financial crisis.

As a result, the demand for South African products by our key trading partners is lower. Firms are not confident that if they invest in new factories they will be able to sell their products. Some industries have not been producing at sufficient levels because of industrial relations disputes.

Consumers are not spending much as well due to tougher economic conditions.

However, the signs of recovery in the United States and other trading partners give signs of hope.

Our government supports job creation by promoting a competitive economy overall.

This we do by providing social and economic infrastructure, a framework for skills development, and the regulatory environment within which businesses must operate. We also encourage investment in activities that can generate more employment and support emerging enterprise.

Honourable Members,

Since the adoption of the New Growth Path, employment has climbed by three quarters of a million (750 000 jobs). Just under half of the new jobs have been generated in community and social services, largely in the public service - mostly as the result of increased employment of health workers, educators and police. Most of the remaining jobs were generated in business services.

Still, employment in the core productive sectors - mining, agriculture and manufacturing - also rose.

Agricultural employment climbed by over 70 000 in this period, which was the largest expansion in this sector in four decades. Manufacturing saw an increase of 22 000 jobs, and mining 9000.

Honourable Members,

Government has a number of programmes in place to support employment creation both through public employment schemes and, on a larger scale, through support for private investment. Central elements include the National infrastructure Plan, which represents a critical support for employment creation and inclusive growth.

The programme provides employment in construction, through local procurement and by supporting small enterprises. Let me use the example of Eskom's Kusile power plant. At the end of June 2013, this project alone had generated jobs for 14 600 people, of whom 7700 were youth. When it is completed, and while stabilising our electricity supply, it will indirectly support even higher numbers across the whole economy.

Under the Industrial Policy Action Plan government is vigorously supporting the diversification of industry as well as the expansion of value-adding services which also contributes to job creation.

For instance, in 2011, the 23 000 new taxis entering the South African market were fully imported.

In 2012, however, two companies began to assemble taxis in South Africa, namely Toyota in Durban from 1 April 2012, and Beijing Automotive Works in Johannesburg from January 2013.

As a result, from April 2012 to March 2013, 9600 taxis were assembled locally, with Toyota contributing about 9000 and Beijing Auto Works supplying the rest.

That is approximately 40% of the demand in South Africa during this period up from zero in the previous year.

The Industrial Development Corporation is a critical partner in both the National Infrastructure Plan and IPAP. In the past few years, it has substantially increased its funding for industry, doubling its disbursements in the past year alone. In the process, it has supported a host of major new investments.

They include one of the two new taxi assembly plants. The IDC has also helped launch two major new investments in soya crushing in the past year.

This growing industry employs hundreds directly but also provides a market for thousands of smallholders and farmworkers producing inputs.

Phase II of the Expanded Public Works Programme aims to provide two million work opportunities by 2015, largely through the Community Work Programme.

The programme provides a safety net for the unemployed and provides opportunities for people and especially youth to serve their communities. Other specific programme information can be obtained through the Budget Votes and annual reports of the various economic departments and public entities.

Government will continue with its concerted efforts to support employment creation initiatives and we encourage the private sector to also continue in the same vein of doing everything possible to create sustainable jobs.

I thank you.

6. Mrs E C van Lingen (DA-EC) to ask the President of the Republic:

(1) Whether, since he has taken over the leadership of the National Nuclear Energy Coordinating Committee (NNECC), he will make the (a) International Atomic Energy Agency (IAEA) report on South Africa's readiness to Nuclear Energy build available and (b) revised Integrated Resource Plan 2010 available to the committees in Parliament; if not, why not; if so, (i) when in each case and (ii) when will the pricing process for the nuclear build commence;*

(2) whether this will follow a transparent tender process in order to determine the successful service provider; if not, why not; if so, (a) what will be the procurement terms of reference in this case and (b) what are the further relevant details?

Reply:

Honourable Members,

South Africa is Member State of the International Atomic Energy Agency (IAEA) and represented in the Board of Governors of this Agency, and we therefore subscribe to the principles of this Agency.

In this regard, in February 2013 the IAEA conducted a peer review on South Africa's infrastructure for the nuclear build programme using the Integrated Nuclear Infrastructure Review (INIR) methodology.

To date, Cabinet is yet to receive the final Review report, which is expected within the next two months.

Upon receipt of the report, Cabinet will deliberate on the recommendations of this report and take appropriate decisions regarding the way forward.

The process of updating the Integrated Resource Plan 2010-2030 will be completed by the end of this year, 2013. At this stage different scenarios which will be considered in this update are being finalised.

These scenarios will be communicated at the stakeholder workshops that the Department of Energy will be holding starting in this month, September 2013, as part of the update of the Integrated Energy Plan over the next few months.

Once finalised, the updated IRP will become publicly available.

Honourable Members,

The Department of Energy is doing a lot of work putting systems in place as part of the Phased Decision Making Approach for implementing the nuclear programme including the procurement aspect.

This will also take into account the lessons learnt from the successful procurement process for the Independent Power Producers.

To be precise, the final decision on the procurement of nuclear power plants has not yet been made.

I thank you.

Enquiries:

Mac Maharaj
Cell: 079 879 3203
E-mail: macmaharaj@icloud.com

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